Relevant:
- Monetary reform is the key to spending restraint
- Ron Paul Subcommittee Hearing On The Relationship Between The Federal Reserve And Government Debt
- Trump to ask for Across-the-Board 5% Spending Cut; Still Touts Tax Cuts and Hiked Military Spending
- The Fed Has Spoken: No Bailout for Main Street
- A Real Economic Stimulus; Congress Pay Attention
2008-10-03 — wordpress.com
The Federal Reserve operates a Ponzi scheme. Congress can pay for federal expenses with funds collected from taxes, imposts, and duties, but congress is never satisfied with this amount. The desire to buy votes from special interest groups, and financially assist politically connected friends (or is this redundant?), compels congress-critters to spend more, and this is identified as deficit spending. To finance this deficit, the Federal Reserve will create on their accounting books a line of credit equal in the amount of the bills, bonds, or notes the congress will authorize; i.e., the Fed receives the interest-bearing obligation on the full faith and credit of the United States and in return checks written by government agencies will be honored by the banking system. The accumulated deficits are identified as the national debt…
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